Core Insights - The US government is interested in acquiring a stake in Critical Metals as part of a strategy to control critical mineral supplies globally [1][3] - Critical Metals has increased its interest in the Tanbreez project in Greenland from 42% to 92.5%, positioning itself for near-control of one of the largest rare earth deposits [2][8] - The US has been actively investing in companies with critical mineral projects, including a recent 5% stake in Lithium Americas and a $400 million investment in MP Materials [4][5] Company Overview - Critical Metals is one of many companies seeking government investment for critical minerals projects [5] - The company is in discussions to convert a $50 million government grant into equity, potentially giving the US an 8% stake in Critical Metals and the Tanbreez project [6] - The company’s stock surged by 80% in after-hours trading following the news of government interest, closing at $7.98 with a market capitalization of $786.9 million [7] Project Details - The Tanbreez deposit is estimated to contain at least 45 million tonnes of resources, with a significant portion classified as "heavy" rare earths, which are in high demand [8][9] - A preliminary economic assessment indicates a net present value (NPV) of approximately $3 billion for the Tanbreez project, with an internal rate of return (IRR) of 180% [10] - The project plans to initiate production of around 85,000 tonnes of rare earth oxides per year by 2026, scaling up to 425,000 tonnes [11] Industry Context - Greenland has attracted US economic interest due to its resource endowment, with efforts to secure private investment in its mineral sector ongoing since the Biden administration [12] - The US government has previously intervened to prevent the sale of the Tanbreez project to a Chinese developer, facilitating its acquisition by Critical Metals [12][13] - Despite the interest, Greenland's mining sector has faced challenges, including limited investor interest and environmental concerns, with only two small mines currently operational [13]